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2019 (5) TMI 1060 - AT - Income TaxAddition of unexplained cash - assessee was searched u/s 132 being part of the “Regal Group” in which assessee’s husband was one of the partner - HELD THAT:- Out of cash balance of ₹ 9,51,605/- as on 31.1.2014, a sum of ₹ 6,86,000/- is claimed to have been deposited which in our view was sufficient enough to cover up the alleged cash deposits. Revenue authorities has not doubted the genuineness of the cash in hand as on 1.4.2012 as well as 1.8.2012 as no addition have been made during the assessment year 2013-14. Cash has been withdrawn from the bank account. There is no finding of revenue authorities for any allegation for the genuineness of the amount credited in the bank accounts other than cash. Keeping the cash in hand idle for almost a year ranging from ₹ 4,91,005/- from February, 2013 to ₹ 9,51,605/- at the end of January, 2014 cannot be a basis to reject the claim of the assessee. There is no bar under the Income Tax Act which restricts a person from keeping cash in hand idle for a certain period. Cash flow statement clearly depicts that the assessee was having sufficient cash in hand from genuine sources which was used to make deposits totaling to ₹ 6,86,000/- during February, 2014 and March, 2014. As the assessee has been successful to explain the source of cash deposit in the bank account no addition was called for unexplained cash deposit. We accordingly delete the addition - Decided in favour of assessee.
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